What is the future interplay between open banking and AI in transforming financial guidance ?
Barath Narayanan Banking data may help inform our thinking on the possibilities at the intersection of OB / AI .
The average savings account interest rate vs . the Fed Funds Rate was 0.57 % versus 5.3 % – yet only 9 % of the depositors shifted balances to higher yields .
Even those who shifted were driven by a flight-to-safety and less by flightto-yield Mortgage rates dropped during the pandemic ( before increasing again in late 2023-2024 ), yet less than 19 % refinanced their mortgages or auto loans .
One interpretation of the above could be that consumers “ stick ” to status-quo and remain “ sticky ”.
All of this is up for potential change – when consumers have access to AI Agents , backed by open banking choices – eliminating the distance and time between best-choice and choiceexecution .
This reduction of friction and speed of execution from the combination of OB / AI could redefine the concepts of customer loyalty , relationship management and asset-liability management for banks and other product providers .
Nicolas de Genot de Nieukerken The data created through open banking enables financial institutions to create a consolidated financial profile of any business or consumer in a single place .
However , this data is only as good as the insights that banks can derive from it to provide value to their customers . This is where AI comes in , enabling organisations to analyse this data and then leverage the resulting insights to provide new services to consumers .
For instance , if a consumer expresses to their bank that they want to start saving and investing , AI-driven insights can enable the bank to create a personalised budget for that consumer with automated recommendations around how much they should spend and save each month across different categories such as entertainment , food , shopping , rent and more . Financial institutions can also train these AI systems to make recommendations based on external trends .
Suppose a customer ’ s electric bill trended upward in the winter months over the past three years . In that case , the organisation can plan for these fluctuations , adjusting its budget recommendations to ensure that the consumer is accounting for all factors .
76 March 2025